U.S. bond rates raise alarm

[Newsjock]

Source: The Globe and Mail

It's the moment bond vigilantes have been waiting for.

Three times this week, the U.S. government was forced to pay sharply higher rates on tens of billions worth of Treasuries to entice buyers – an ominous sign that global investors may be losing faith in the United States' ability to manage its swelling debt load.

If it keeps up, the trend could lead to higher interest rates on everything from home mortgages and car loans to other forms of credit.

It would also make it costlier for the U.S. government to finance its massive borrowing.

“What's happening in Greece and Dubai is headed our way, eventually,” argued Eric Roseman, president of Montreal-based ENR Asset Management. “No nation, not even a reserve currency, can continue to fund deficits externally in the absence of domestic savings and no plan to reduce deficit spending.”

Read more: http://www.theglobeandmail.com/report-on-business/economy/us-bond-rates-raise-alarm/article1513879/

[taught_me_patience]

1. The treasury didn't think they could just print money

and have no consequences did they? I'm suprised rates are still this low.

[dixiegrrrrl]

2. If I had a dollar for every DU thread that said interest rates would not rise...

could not rise, etc.
and IF they did , there would be no problem, no inflation.

Sheesh.